The author is a Forbes contributor. The opinions expressed are those of the writer.

Loading ...

Loading ...

This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe

Just like in the movies, it takes just one man, one hero. And in Brazil that hero is one Federal prosecutor named Eduardo Santos de Oliveira.

After an oil spill off the coast of Rio de Janeiro, one man takes on Chevron.

Oliveira is at it again. After filing one R$20 billion ($11 billion) civil and criminal case against the U.S. multinational for its November spill at the Frade field in the Campos basis deep under the Atlantic Ocean, the federal prosecutor filed another one for the same amount on April 3. That's roughly $21 billion for 2,400 barrels of oil, all of which have been cleaned up, none of which have killed a single marine mammal, and not a drop of which have washed up on the beautiful shores of Rio de Janeiro.

It's gotten to a point now where even Chevron partner Petrobras (PBR) calls the charges unreasonable in its Form 20-F filing with the U.S. Securities and Exchange Commission on March 30:

The Company believes that the amount attributed to this claim is unreasonable and is disproportionately high relative to the extent of the damages caused by the spill. Although the company is not a party to this claim, as a member of the Frade consortium, the company may be contractually liable for 30% of all loss contingencies arising out of this oil spill. In the event that Chevron is held liable under this claim, the Company may have to bear up to 30% of the cost of damages paid by Chevron."

Oliveira isn't just going after Chevron, he is also investigating the National Petroleum Agency and even the Environmental Institute of Brazil, Ibama, which oversaw and later fined Chevron for the spill.

As a result of these two civil suits, which have been transferred from Oliveira's base district of Campos to Rio de Janeiro city, Chevron Brasil's President, George Buck, along with 10 other Chevron executives have had their passports revoked so they cannot leave the country. Chevron now spends more time and money on lawyers than it does drilling for oil. The case could take up to two years to resolve.

Since 2007, Brazil has become the hot spot for multinational oil companies across the sector, from drilling services firms that own oil rigs, to the big integrated companies like BP and Chevron. Everyone is in Brazil, and Chevron wants to stay there.

The spill in the Frade field has been contained. But on March 4, a small leak was discovered. Chevron says it captured the equivalent of two barrels of oil from the sandy bottom. Then Oliveira hit them with another civil action.

According to Oliveira, a series of miscalculations by Chevron caused both the November and March accidents. He cited Chevron's contingency plans post-spill, and said in a summary statement that their clean up efforts were inadequate under the law.

"The oil spill at the Frade field in the Campos Basin has not been contained," he said in a statement this week. "Environmental damage to the state...are incalculable. Every new leak increases this financial impact and exposes the state to future and past errors of calculation (by Chevron). Federal Prosecutors are going to continue monitoring this situation and take all measures available to avoid new disasters and punish those responsible," he said.

The prosecutor's office in Campos where Oliveira works did not respond to emails and phone calls all day Thursday.

For their part, Chevron didn't miss a beat. "The filing of the second lawsuit is another in a series of outrageous actions brought by the same district attorney who previously filed both a criminal and civil case, all of which are without merit," says Kurt Glaubitz, a Chevron spokesman in California. "The (second) 20 billion reais figure...is arbitrary and has no legal and factual basis. As in the other civil lawsuit and the criminal charges, we are confident that a transparent and impartial examination of the facts will demonstrate that Chevron and its employees responded appropriately and responsibly to the incident. Chevron will vigorously defend the company and its employees."